Los Angeles daily herald., 1887-12-31
TWO REPORTS.
Findings Of Pacific Rail
road Commission.
THE RAILROAD DIFFICULTY.
Apaches and Bandits are Murder
ing and Plundering
In Mexico.
TWO REPORTS.
THE RAILROAD DIFFICULTY
Associated Press DISPATCHES to the HERALD.

Associated Press DISPATCHES to the ERALD.
New YoRk, December 30.--A
special to the World from Washington
reports to give the authentic summary
OF the two reports Of the Pacific Rail
road Commission now in President
Cleveland's hands. Commissioners
Anderson and Littler filed one report
and Commissioner Pattison the other.
The majority report contains severe
structures upon certain indicated
perversions of the trust by Gould,
Sage and other former directors OF the
Union Pacific and by Stanford, Hunt
ington, Crocker and Hopkins OF the
Central Pacific. 1t says that the
Union Pacific seems to have passed
out Of the control and ownership OF
those responsible for indicated frauds,
and that the present management
seems honest and conscientious both
in respect to the interest OF stock
holders and creditors of the property
in point OF roadbed, equipment and
service. 1t is accompanied by
draft OF a bill suggesting
that the time for the payment OF
the debt due the government
be extended for fifty years, but that
the roads shall execute a formal
mortgage to the Government, which
now has only statutory lien, and
that the debt be funded at three per
cent. per annum, payable semi-annu-
ally into the United States Treasury,
but that the roads shall have the
privilege of taking up any part of the
debt i'll advance; also, that the roads
shall provide a sinking fund OF one
half OF one per cent annually upon
the total amount of their debt to the
Government for ten years, and the
trustees shall then provide for proper
per centum payments to the sinking
| funds.
The minority report, it is claimed,
denounceA the former officers OF the
Union Pacific and the present man.
agement of the Central Pacific, and
says that it is not now u question of
the payment OF the Government
debt, but of the punishment of these
offenders. The Commissioner recom-
mends that the Government Institute
suits to have the charters OF both
roads forfeited and for the appoint
ment of Receiver, who will have
the power to institute civil and GRIM
.,,, Il he IN al o1f IL
suggests that the roads shall then be
offered for sale and believes that they
will be bought in by the stockholders.
THE MINORITY REPORT.
WASHINGTON, December 30.---The
minority report OF Ex-Governor Patti
son of the Pacific Railway Commits
sion, covers sixty-eighV pages of
printed matter. 1t recites the grant
OF subsidy bonds amounting to $64,-
000, 900 to six railroads, afterward re-
duced to forty, which formed part OF
the original scheme OF communica-
ton between the Missouri river and
the Pacific ocean. 1t shows the pay
ment OF interest by the Government
on these bonds for thirty years,
amounting to $ll4,O00, 900, and grants
of land from which they have al
ready realized $50 900 900, with lands
worth SIG, 100000 yet unsold, the
receipt OF aid from other sources
of $},000,000, and he also estima' 'es
that the companies had the advantage
of the use OF 100000 600, represent
ing the use Of the governments an
nual advances of nearly $4,000 600,
which the companies are not required
to paw until the maturity OF the subsidy
bonds in lS95-99. He calculates the
total aid thus extended to the roads
to have been $447, ,000,0
The Commissioner says the
roads were built for less than $96 .000,-
600. but they issued stocks and bonds
representing total of $26S, 900 900
rhe Commissioner then says that
nearly every obligation which these
corporations assumed under the laws
OF the United States or as common
carriers have been violated.
Their management has been a
national disgrace. Since the date of
their inception they have been con-
ducted on purely speculative basis,
aided by companies and combined
with others to tax the communities
which they served, and they huve
forced the consuming classes in all
sections of the country to contribute
to the payment of the interest and
dividend upon q fictitious capital
which thew had created. They dis
eliminated between individuals, be-
tween localities and between arti-
IL f,,ar,1 l..
dividuals and companies. They
eXerted terrorism over merch-
ants and over communities, thus
interfering with the lawful pur-
suits OF the people. They participated
in election contests. BY secret cuts
and by violent and rapid fluctuations
in rates they menaced business, par
alyzed capital and retarded inv, s :
ment and development. He contends
tha}, by reason Of overcharges and err
roneous reports, the Government has
suffered losses on these accounts
amounting to $S,000,000.
He cites that the aided companies
have paid So, 600, 900 for legal expenes.
$140 900 900 for interest, $63, 900, 900
for dividends, and in eighteen years
rave pttlu INC UoVeTuincut Sol wv UCU
toward the matured debt of 100000
600 up to December 81, 1885. He de-
clares that the Central Kansas and
Union Pacific have always evaded
local taxation and cites that the spe-
cial session ofthe California Legisla-
ture had to be called to devise meth
ods to enforce the tax against the
Central Pacific. He claims that if the
roads had been honestly managed
they would now be entirely free from
debt. He claims that the consolida-
ton of the Union Pacific with the
Kansas Pacific and Denver Pacific in
January, 1880, was fraud on the
Government by which Jay Gould,
Russell Sage, Sidney Dillon, Freder-
ick l.. Ames and other directors prac-
tically loaded upon the Union Paci-